While Texas allows non-compete agreements that are reasonable and meet the requirements of the Texas Covenants Not to Compete Act, the courts in this state
“Hope for the best, but plan for the worst” should be every employer’s motto in handling the departure of employees. While most will leave without
The Fifth Circuit Court of Appeals recently considered whether a travel agency’s noncompete agreement with its employee was enforceable under Texas law. It concluded that because the agreement did not have geographic limits, was not limited to the travel agency’s customers with whom the employee actually worked during her employment, and included entire travel agency industry, the non-compete was unenforceable.
What a lot of companies do not realize, however, is that if they wait too long to ask for an injunction after finding out about the employee’s competitive activities, a court may deny their request simply because they waited too long
Any Texas companies that have employees who primarily work and reside in California, should update their non-compete agreements with such employees to meet the requirements of the California Labor Code Section 925.
In Texas, covenants limiting employees’ professional mobility are unlawful restraints on trade unless they fall within the exception created by the Covenants not to Compete Act.